The expert admitted a sharp drop in supply of primary real estate

The primary real estate market is expected to experience a possible reduction in supply by 2027-2028. In addition, rising costs of construction materials, labor and increasing interest rates on project financing, create serious challenges for developers. Irina Radchenko, president of the International Academy of Mortgage and Real Estate, told Izvestia on January 28.

"The prospects are not rosy. Now, due to a sharp decline in demand, many developers are selling off their land banks, and in the coming years we are expected to see a significant reduction in the supply of new projects," Radchenko explained.

According to her, developers cannot afford to reduce the quality of construction, as this will make their products unattractive to buyers. Instead, they are forced to find ways to complete the projects, minimizing margins, but not working at a loss. This limits the opportunities for mass dumping and a sharp drop in prices in the primary market.

"A sharp drop in prices for primary housing is not expected, as developers cannot afford it because of strict quality standards and rising costs," Radchenko said.

The expert also drew attention to the fact that secondary real estate in the current conditions looks more profitable than primary, especially if you do not take into account the preferential mortgage, which is available only for new buildings. She advised buyers to keep a close eye on the market, as some developers may offer significant discounts on individual projects to attract clients and obtain more favorable project financing.

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"Clients should be careful and keep an eye on the promotions of real estate developers. Although mass dumping is not expected, periodic discounts on individual projects may reach 20-30% and in some cases even 50%. This is due to the fact that developers seek to quickly complete their portfolios in order to get more favorable terms on project financing," Radchenko specified.

"In general, if we do not consider preferential mortgage, the secondary real estate looks more favorable. There are no risks of under-construction or delays in the secondary market, which makes it attractive for buyers," Radchenko summarized.

Earlier, on January 9, "Izvestia" got acquainted with the study of the company "Airplane" where it was reported on the mandatory amenities of Russians when buying an apartment. According to experts, in the new year Muscovites want to buy apartments with walk-in closets (23%), built-in pantries (15%), additional outlets on the balcony (13%), a second bathroom (12%), master bedroom (9%) and a niche for a washing machine (8%).